During 2025, the Social Enterprise Commission held 15 meetings and adopted 83 decisions regarding social enterprise status, including recommending the granting of social enterprise status to 63 applicants and refusing the status to 20 applicants. Interest in obtaining social enterprise status remained consistent throughout the year, with an average of six applications reviewed per commission meeting.
Last year, the Commission also reviewed 210 annual activity reports of social enterprises for 2024. Of these, 176 were approved, 34 were approved with conditions requiring improvements, and in one case the withdrawal of social enterprise status was recommended. During 2025, social enterprise status was discontinued for a total of nine companies (which voluntarily relinquished the status) and revoked for seven companies (due to non-compliance with regulatory requirements).
Out of the 210 companies that submitted activity reports for 2024, 196 reported turnover, with an average turnover reaching EUR 290,000. A total of 121 companies generated profit, with an average profit of EUR 27,000. At the same time, it should be noted that, in accordance with the Social Enterprise Law, social enterprises are not allowed to distribute profit; instead, it must be reinvested in the company. Aggregated data on the social impact created by social enterprises in 2024 show that 355 people were employed in work-integration social enterprises, including 286 representatives of target groups. A total of 574,000 individuals directly or indirectly benefited from the activities of social enterprises through various services, and 862 people participated in volunteer activities supporting social enterprises.
Data on the performance of social enterprises in 2025 will be obtained from annual activity reports to be submitted by 1 May this year.
The Social Enterprise Commission is a collegial body established by the Ministry of Welfare that reviews applications for social enterprise status and evaluates whether social enterprises operate in compliance with the Social Enterprise Law. The Commission includes experts from various fields representing public administration and non-governmental organisations, ensuring comprehensive and objective assessment.
The latest data on social enterprises as of 31 December 2025 show that by the end of the year there were 281 active social enterprises in Latvia, while since the Social Enterprise Law entered into force in 2018, a total of 390 companies have been granted social enterprise status. The most common field of activity among social enterprises at the end of 2025 was improving quality of life for groups affected by socially significant challenges. A total of 165 companies, or 59% of all social enterprises, operated in this field. Meanwhile, 61 companies (21%) focused on addressing issues important to society as a whole, and 55 companies (20%) operated in the field of work integration (employment of target groups). Social enterprises operate throughout Latvia; however, out of the total of 281 companies, the largest share — 127 companies (45%) — operated in Riga. In the Pierīga region there were 59 companies (21%), in Vidzeme 34 (12%), in Zemgale 25 (9%), in Kurzeme 22 (8%), and in Latgale 14 companies (5%).
It is expected that in 2026 the social entrepreneurship sector will continue to grow, with increasing employment of target groups and greater public engagement. Support measures for social enterprises will also continue in 2026, including grants for the development of social business ideas, compensation for the employment of target group representatives, and free consultations for developing business plans.
